Critical Review: Lsb Industries (NYSE:LXU) versus China Carbon Graphite Group (OTCMKTS:CHGI)

Lsb Industries (NYSE:LXU) and China Carbon Graphite Group (OTCMKTS:CHGI) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, earnings, profitability and institutional ownership.

Insider and Institutional Ownership

73.7% of Lsb Industries shares are owned by institutional investors. 3.0% of Lsb Industries shares are owned by company insiders. Comparatively, 5.5% of China Carbon Graphite Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Lsb Industries has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500. Comparatively, China Carbon Graphite Group has a beta of -1.43, suggesting that its stock price is 243% less volatile than the S&P 500.

Valuation & Earnings

This table compares Lsb Industries and China Carbon Graphite Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lsb Industries	$615.21 million	1.60	$24.61 million	$0.63	21.77
China Carbon Graphite Group	N/A	N/A	N/A	N/A	N/A

Lsb Industries has higher revenue and earnings than China Carbon Graphite Group.

Profitability

This table compares Lsb Industries and China Carbon Graphite Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lsb Industries	7.16%	8.91%	3.96%
China Carbon Graphite Group	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings and recommmendations for Lsb Industries and China Carbon Graphite Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lsb Industries	0	5	0	0	2.00
China Carbon Graphite Group	0	0	0	0	0.00

Lsb Industries presently has a consensus target price of $15.33, suggesting a potential upside of 11.81%. Given Lsb Industries’ stronger consensus rating and higher probable upside, research analysts clearly believe Lsb Industries is more favorable than China Carbon Graphite Group.

Summary

Lsb Industries beats China Carbon Graphite Group on 8 of the 9 factors compared between the two stocks.

About Lsb Industries

LSB Industries, Inc. engages in the manufacture, marketing, and sale of chemical products. The company provides nitrogen-based fertilizers, such as ammonia, fertilizer grade high density ammonium nitrate (HDAN), and urea ammonia nitrate for fertilizer for corn, pastures, and other crops, as well as nitrogen, phosphorus, and potassium (NPK) fertilizer blends application. It also offers high purity and commercial grade ammonia, high purity ammonium nitrate, sulfuric acids, mixed nitrating acids, carbon dioxide, and diesel exhaust fluids, as well as concentrated, and blended and regular nitric acids for various applications, including semiconductor, nylon, and polyurethane intermediates, ammonium nitrate, and metal processing; chemical feedstocks, emissions abatement, water treatments, and refrigerants; pulp and paper, aluminum, water treatment, metals, and vanadium processing; abatement for diesel vehicles; and food refrigeration, dry ice, and enhanced oil recovery. In addition, the company provides industrial grade and low density ammonium nitrate, and ammonium nitrate for explosives mining, quarries, and other blasting activities. It sells its products through distributors, as well as directly to end customers in the United States and other parts of North America. The company serves to the agricultural, industrial, and mining markets. LSB Industries, Inc. was incorporated in 1968 and is headquartered in Oklahoma City, Oklahoma.

About China Carbon Graphite Group

China Carbon Graphite Group, Inc., together with its subsidiaries, engages in the research and development, manufacture, rework, and sale of graphene, graphene oxide, carbon graphite felt, and graphite bipolar plates in the People's Republic of China. Its graphene oxide is used as a conductive agent in lithium ion batteries, super capacitors, rubber and plastic additives, conductive inks, special coatings, transparent conductive thin films, and chips; and graphite bipolar plates are used in solar power storage. The company operates roycarbon.com, a business-to-business and business-to-consumers Internet portal for graphite related products. China Carbon Graphite Group, Inc. was founded in 1986 and is based in Diamond Bar, California.